By: Dutton (Senate Sponsor - Birdwell) H.B. No. 3361
         (In the Senate - Received from the House April 29, 2013;
  April 29, 2013, read first time and referred to Committee on
  Intergovernmental Relations; May 10, 2013, reported adversely,
  with favorable Committee Substitute by the following vote:  Yeas 5,
  Nays 0; May 10, 2013, sent to printer.)
 
  COMMITTEE SUBSTITUTE FOR H.B. No. 3361 By:  Nichols
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to the continuation and functions of the Texas Department
  of Housing and Community Affairs; authorizing and otherwise
  affecting the application of certain fees.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
  ARTICLE 1. GENERAL OPERATIONS AND ADMINISTRATION OF THE TEXAS
  DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS
         SECTION 1.01.  Section 2306.022, Government Code, is amended
  to read as follows:
         Sec. 2306.022.  APPLICATION OF SUNSET ACT. The Texas
  Department of Housing and Community Affairs is subject to Chapter
  325 (Texas Sunset Act). Unless continued in existence as provided
  by that chapter, the department is abolished and this chapter
  expires September 1, 2025 [2013].
         SECTION 1.02.  Section 2306.043(c), Government Code, is
  amended to read as follows:
         (c)  The notice must:
               (1)  include a brief summary of the alleged violation;
               (2)  state the amount of the recommended penalty; and
               (3)  inform the person of the person's right to a
  hearing before the State Office of Administrative Hearings [board]
  on the occurrence of the violation, the amount of the penalty, or
  both.
         SECTION 1.03.  Section 2306.044(a), Government Code, is
  amended to read as follows:
         (a)  Not later than the 20th day after the date the person
  receives the notice, the person in writing may:
               (1)  accept the determination and recommended penalty
  of the director; or
               (2)  make a request for a hearing before the State
  Office of Administrative Hearings [board] on the occurrence of the
  violation, the amount of the penalty, or both.
         SECTION 1.04.  Section 2306.045, Government Code, is amended
  to read as follows:
         Sec. 2306.045.  HEARING. (a) If the person requests a
  hearing before the State Office of Administrative Hearings [board]
  or fails to respond in a timely manner to the notice, the director
  shall set a hearing and give written notice of the hearing to the
  person.
         (b)  The State Office of Administrative Hearings [board]
  shall:
               (1)  hold the hearing;
               (2)  [and] make findings of fact and conclusions of law
  about the occurrence of the violation and the amount of a proposed
  penalty; and
               (3)  issue a proposal for decision regarding the
  penalty and provide notice of the proposal to the board.
         (c)  Any administrative proceedings relating to the
  imposition of a penalty under Section 2306.041 is a contested case
  under Chapter 2001.
         SECTION 1.05.  Section 2306.046(a), Government Code, is
  amended to read as follows:
         (a)  The board shall issue an order after receiving a
  proposal for decision from the State Office of Administrative
  Hearings under Section 2306.045.  [Based on the findings of fact and
  conclusions of law, the board by order may:
               [(1)     find that a violation occurred and impose a
  penalty; or
               [(2)  find that a violation did not occur.]
         SECTION 1.06.  Section 2306.049(a), Government Code, is
  amended to read as follows:
         (a)  Judicial review of a board order imposing an
  administrative penalty is under the substantial evidence rule [by
  trial de novo].
         SECTION 1.07.  Section 2306.6721, Government Code, is
  transferred to Subchapter B, Chapter 2306, Government Code,
  redesignated as Section 2306.0504, Government Code, and amended to
  read as follows:
         Sec. 2306.0504 [2306.6721].  DEBARMENT FROM PROGRAM
  PARTICIPATION. (a) The board by rule shall adopt a policy
  providing for the debarment of a person from participation in
  programs administered by the department [the low income housing tax
  credit program as described by this section].
         (b)  The department may debar a person from participation in
  a department [the] program on the basis of the person's past failure
  to comply with any condition imposed by the department in the
  administration of its programs [connection with the allocation of
  housing tax credits].
         (c)  The department shall debar a person from participation
  in a department [the] program if the person:
               (1)  materially or repeatedly violates any condition
  imposed by the department in connection with the administration of
  a department program, including a material or repeated violation of
  a land use restriction agreement regarding a development supported
  with a [allocation of] housing tax credit allocation [credits]; or
               (2)  is debarred from participation in federal housing
  programs by the United States Department of Housing and Urban
  Development[; or
               [(3)     is in material noncompliance with or has
  repeatedly violated a land use restriction agreement regarding a
  development supported with a housing tax credit allocation].
         (d)  A person debarred by the department from participation
  in a department [the] program may appeal the person's debarment to
  the board.
  ARTICLE 2.  LOW INCOME HOUSING TAX CREDIT PROGRAM
         SECTION 2.01.  Section 2306.67021, Government Code, is
  amended to read as follows:
         Sec. 2306.67021.  APPLICABILITY OF SUBCHAPTER. Except as
  provided by Sections [Section] 2306.6703 and 2306.67071, this
  subchapter does not apply to the allocation of housing tax credits
  to developments financed through the private activity bond program.
         SECTION 2.02.  Subchapter DD, Chapter 2306, Government Code,
  is amended by adding Section 2306.67071 to read as follows:
         Sec. 2306.67071.  ADDITIONAL APPLICATION REQUIREMENT:
  NOTICE, HEARING, AND RESOLUTION BY CERTAIN GOVERNING BODIES. (a)
  Before submitting to the department an application for housing tax
  credits for developments financed through the private activity bond
  program, including private activity bonds issued by the department,
  the Texas State Affordable Housing Corporation, or a local issuer,
  an applicant must provide notice of the intent to file the
  application to:
               (1)  the governing body of a municipality in which the
  proposed development site is to be located;
               (2)  subject to Subdivision (3), the commissioners
  court of a county in which the proposed development site is to be
  located, if the proposed site is to be located in an area of a county
  that is not part of a municipality; or
               (3)  the commissioners court of a county in which the
  proposed development site is to be located and the governing body of
  the applicable municipality, if the proposed site is to be located
  in the extraterritorial jurisdiction of a municipality.
         (b)  A county or municipality, as applicable, shall hold a
  hearing at which public comment may be made on the application.
         (c)  The board may not approve an application for housing tax
  credits for developments financed through the private activity bond
  program unless the applicant has submitted to the department a
  certified copy of a resolution from each applicable governing body
  described by Subsection (a). The resolution must certify that:
               (1)  notice has been provided to each governing body as
  required by Subsection (a);
               (2)  each governing body has had sufficient opportunity
  to obtain a response from the applicant regarding any questions or
  concerns about the proposed development;
               (3)  each governing body has held a hearing under
  Subsection (b); and
               (4)  after due consideration of the information
  provided by the applicant and public comment, the governing body
  does not object to the filing of the proposed application.
         (d)  The department by rule may provide for the time and
  manner of the submission to the department of a resolution required
  by Subsection (c).
         SECTION 2.03.  Section 2306.6710(b), Government Code, is
  amended to read as follows:
         (b)  If an application satisfies the threshold criteria, the
  department shall score and rank the application using a point
  system that:
               (1)  prioritizes in descending order criteria
  regarding:
                     (A)  financial feasibility of the development
  based on the supporting financial data required in the application
  that will include a project underwriting pro forma from the
  permanent or construction lender;
                     (B)  quantifiable community participation with
  respect to the development, evaluated on the basis of a resolution
  concerning the development that is voted on and adopted by the
  following, as applicable:
                           (i)  the governing body of a municipality in
  which [written statements from any neighborhood organizations on
  record with the state or county in which the development is to be
  located and whose boundaries contain] the proposed development site
  is to be located;
                           (ii)  subject to Subparagraph (iii), the
  commissioners court of a county in which the proposed development
  site is to be located, if the proposed site is to be located in an
  area of a county that is not part of a municipality; or
                           (iii)  the commissioners court of a county
  in which the proposed development site is to be located and the
  governing body of the applicable municipality, if the proposed site
  is to be located in the extraterritorial jurisdiction of a
  municipality;
                     (C)  the income levels of tenants of the
  development;
                     (D)  the size and quality of the units;
                     (E)  the commitment of development funding by
  local political subdivisions;
                     (F)  [the level of community support for the
  application, evaluated on the basis of written statements from the
  state representative or the state senator that represents the
  district containing the proposed development site;
                     [(G)]  the rent levels of the units;
                     (G) [(H)]  the cost of the development by square
  foot;
                     (H) [(I)]  the services to be provided to tenants
  of the development; [and]
                     (I) [(J)]  whether, at the time the complete
  application is submitted or at any time within the two-year period
  preceding the date of submission, the proposed development site is
  located in an area declared to be a disaster under Section 418.014;
  and
                     (J)  quantifiable community participation with
  respect to the development, evaluated on the basis of written
  statements from any neighborhood organizations on record with the
  state or county in which the development is to be located and whose
  boundaries contain the proposed development site;
               (2)  uses criteria imposing penalties on applicants or
  affiliates who have requested extensions of department deadlines
  relating to developments supported by housing tax credit
  allocations made in the application round preceding the current
  round or a developer or principal of the applicant that has been
  removed by the lender, equity provider, or limited partners for its
  failure to perform its obligations under the loan documents or
  limited partnership agreement; and
               (3)  encourages applicants to provide free notary
  public service to the residents of the developments for which the
  allocation of housing tax credits is requested.
         SECTION 2.04.  Section 2306.6717(a), Government Code, is
  amended to read as follows:
         (a)  Subject to Section 2306.67041, the department shall
  make the following items available on the department's website:
               (1)  as soon as practicable, any proposed application
  submitted through the preapplication process established by this
  subchapter;
               (2)  before the 30th day preceding the date of the
  relevant board allocation decision, except as provided by
  Subdivision (3), the entire application, including all supporting
  documents and exhibits, the application log, a scoring sheet
  providing details of the application score, and any other document
  relating to the processing of the application;
               (3)  not later than the third working day after the date
  of the relevant determination, the results of each stage of the
  application process, including the results of the application
  scoring and underwriting phases and the allocation phase;
               (4)  before the 15th day preceding the date of board
  action on the amendment, notice of an amendment under Section
  2306.6712 and the recommendation of the director and monitor
  regarding the amendment; and
               (5)  an appeal filed with the department or board under
  Section 2306.0504 or 2306.6715 [or 2306.6721] and any other
  document relating to the processing of the appeal.
         SECTION 2.05.  Section 2306.6718(b), Government Code, is
  amended to read as follows:
         (b)  The department shall provide the elected officials with
  an opportunity to comment on the application during the application
  evaluation process [provided by Section 2306.6710] and shall
  consider those comments in evaluating applications [under that
  section].
         SECTION 2.06.  Section 2306.6719, Government Code, is
  amended by adding Subsections (c), (d), (e), and (f) to read as
  follows:
         (c)  For a violation other than a violation that poses an
  imminent hazard or threat to health and safety, the department must
  provide the owner of a development with the following periods to
  correct a failure to comply with a condition or law described by
  Subsection (a)(1) or (2):
               (1)  30 days for a failure to file the annual owner's
  compliance report; and
               (2)  90 days for any other failure to comply under this
  section.
         (d)  For good cause shown, the executive director may extend
  the periods provided under Subsection (c).
         (e)  Solely for purposes of determining eligibility to apply
  for and receive financial assistance from the department, a
  development may not be considered to be in noncompliance with an
  applicable condition or law if the owner of the development takes
  appropriate corrective action during the period provided under
  Subsection (c).
         (f)  Notwithstanding Subsection (e), the department shall:
               (1)  submit to the applicable federal agency any report
  required by federal law regarding an owner's noncompliance with a
  condition or law described by Subsection (a)(1) or (2); and
               (2)  for purposes of developing and administering the
  policy relating to debarment under Section 2306.0504, consider
  recurring violations of a condition or law described by Subsection
  (a)(1) or (2), including violations that are corrected during the
  applicable period provided under Subsection (c).
         SECTION 2.07.  Subchapter DD, Chapter 2306, Government Code,
  is amended by adding Section 2306.6739 to read as follows:
         Sec. 2306.6739.  HOUSING TAX CREDITS FINANCED USING FEDERAL
  EMERGENCY FUNDS. (a) To the extent the department receives federal
  emergency funds that must be awarded by the department in the same
  manner as and that are subject to the same limitations as awards of
  housing tax credits, any reference in this chapter to the
  administration of the housing tax credit program applies equally to
  the administration of the federal funds, subject to Subsection (b).
         (b)  Notwithstanding any other law, the department may
  establish a separate application procedure for the federal
  emergency funds that does not follow the uniform application cycle
  required by Section 2306.1111 or the deadlines established by
  Section 2306.6724, and any reference in this chapter to an
  application period occurring in relation to those federal emergency
  funds refers to the period beginning on the date the department
  begins accepting applications for the federal funds and continuing
  until all of the available federal funds are awarded.
  ARTICLE 3. MANUFACTURED HOUSING
         SECTION 3.01.  Section 2306.6022, Government Code, is
  amended by adding Subsections (e) and (f) to read as follows:
         (e)  The division director may allow an authorized employee
  of the division to dismiss a complaint if an investigation
  demonstrates that:
               (1)  a violation did not occur; or
               (2)  the subject of the complaint is outside the
  division's jurisdiction under this subchapter.
         (f)  An employee who dismisses a complaint under Subsection
  (e) shall report the dismissal to the division director and the
  board.  The report must include a sufficient explanation of the
  reason the complaint was dismissed.
         SECTION 3.02.  Subchapter AA, Chapter 2306, Government Code,
  is amended by adding Section 2306.6023 to read as follows:
         Sec. 2306.6023.  NEGOTIATED RULEMAKING AND ALTERNATIVE
  DISPUTE RESOLUTION. (a)  The division shall develop and implement a
  policy to encourage the use of:
               (1)  negotiated rulemaking procedures under Chapter
  2008 for the adoption of division rules; and
               (2)  appropriate alternative dispute resolution
  procedures under Chapter 2009 to assist in the resolution of
  internal and external disputes under the division's jurisdiction.
         (b)  The division's procedures relating to alternative
  dispute resolution must conform, to the extent possible, to any
  model guidelines issued by the State Office of Administrative
  Hearings for the use of alternative dispute resolution by state
  agencies.
         (c)  The division shall:
               (1)  coordinate the implementation of the policy
  adopted under Subsection (a);
               (2)  provide training as needed to implement the
  procedures for negotiated rulemaking or alternative dispute
  resolution; and
               (3)  collect data concerning the effectiveness of those
  procedures.
         SECTION 3.03.  Section 1201.003(17), Occupations Code, is
  amended to read as follows:
               (17)  "License holder" or "licensee" means a person who
  holds a department-issued license as a manufacturer, retailer,
  broker, [rebuilder,] salesperson, or installer.
         SECTION 3.04.  Sections 1201.055(a) and (b), Occupations
  Code, are amended to read as follows:
         (a)  With guidance from the federal Housing and Community
  Development Act of 1974 (42 U.S.C. Section 5301 et seq.) and from
  the rules and regulations adopted under the National Manufactured
  Housing Construction and Safety Standards Act of 1974 (42 U.S.C.
  Section 5401 et seq.), the board shall establish fees as follows:
               (1)  if the department acts as a design approval
  primary inspection agency, a schedule of fees for the review of
  HUD-code manufactured home blueprints and supporting information,
  to be paid by the manufacturer seeking approval of the blueprints
  and supporting information;
               (2)  except as provided by Subsection (e), a fee for the
  inspection of each HUD-code manufactured home manufactured or
  assembled in this state, to be paid by the manufacturer of the home;
               (3)  a fee for the inspection of an alteration made to
  the structure or plumbing, heating, or electrical system of a
  HUD-code manufactured home, to be charged on an hourly basis and to
  be paid by the person making the alteration;
               (4)  a fee for the inspection of the rebuilding of a
  salvaged manufactured home, to be paid by the retailer [rebuilder];
               (5)  a fee for the inspection of a used manufactured
  home to determine whether the home is habitable for the issuance of
  a new statement of ownership and location; and
               (6)  a fee for the issuance of a seal for a used mobile
  or HUD-code manufactured home.
         (b)  In addition to the fees imposed under Subsections
  (a)(2), (3), and (4), a manufacturer or [,] a person making an
  alteration, [or a rebuilder,] as appropriate, shall be charged for
  the actual cost of travel of a department representative to and
  from:
               (1)  the manufacturing facility, for an inspection
  described by Subsection (a)(2); or
               (2)  the place of inspection, for an inspection
  described by Subsection (a)(3) or (4).
         SECTION 3.05.  Section 1201.056, Occupations Code, is
  amended to read as follows:
         Sec. 1201.056.  LICENSE FEES. (a)  The board shall establish
  fees for the issuance and renewal of licenses for:
               (1)  manufacturers;
               (2)  retailers;
               (3)  brokers;
               (4)  salespersons; and
               (5)  [rebuilders; and
               [(6)]  installers.
         (b)  The board by rule may establish a fee for reprinting a
  license issued under this chapter.
         SECTION 3.06.  Sections 1201.101(e) and (f-1), Occupations
  Code, are amended to read as follows:
         (e)  A person may not repair, rebuild, or otherwise alter a
  salvaged manufactured home unless the person holds a [rebuilder's
  or] retailer's license.
         (f-1)  A retailer may not be licensed to operate more than 
  [at a principal location and] one location [or more branch
  locations] under a single license[; provided, however, that a
  separate application must be made for each branch, and each branch
  must be separately bonded].
         SECTION 3.07.  Sections 1201.103(a) and (b), Occupations
  Code, are amended to read as follows:
         (a)  An applicant for a license as a manufacturer, retailer,
  broker, [rebuilder,] or installer must file with the director a
  license application containing:
               (1)  the legal name, address, and telephone number of
  the applicant and each person who will be a related person at the
  time the requested license is issued;
               (2)  all trade names, and the names of all other
  business organizations, under which the applicant does business
  subject to this chapter, the name of each such business
  organization registered with the secretary of state, and the
  address of such business organization;
               (3)  the dates on which the applicant became the owner
  and operator of the business; and
               (4)  the location to which the license will apply.
         (b)  A license application must be accompanied by:
               (1)  proof of the security required by this subchapter;
  [and]
               (2)  payment of the fee required for issuance of the
  license; and
               (3)  the information and the cost required under
  Section 1201.1031.
         SECTION 3.08.  Subchapter C, Chapter 1201, Occupations Code,
  is amended by adding Section 1201.1031 to read as follows:
         Sec. 1201.1031.  CRIMINAL HISTORY RECORD INFORMATION
  REQUIREMENT FOR LICENSE. (a) The department shall require that an
  applicant for a license or renewal of an unexpired license submit a
  complete and legible set of fingerprints, on a form prescribed by
  the board, to the department or to the Department of Public Safety
  for the purpose of obtaining criminal history record information
  from the Department of Public Safety and the Federal Bureau of
  Investigation.  The applicant is required to submit a set of
  fingerprints only once under this section unless a replacement set
  is otherwise needed to complete the criminal history check required
  by this section.
         (b)  The department shall refuse to issue a license to or
  renew the license of a person who does not comply with the
  requirement of Subsection (a).
         (c)  The department shall conduct a criminal history check of
  each applicant for a license or renewal of a license using
  information:
               (1)  provided by the individual under this section; and
               (2)  made available to the department by the Department
  of Public Safety, the Federal Bureau of Investigation, and any
  other criminal justice agency under Chapter 411, Government Code.
         (d)  The department may enter into an agreement with the
  Department of Public Safety to administer a criminal history check
  required under this section.
         (e)  The applicant shall pay the cost of a criminal history
  check under this section.
         SECTION 3.09.  Section 1201.104(a), Occupations Code, is
  amended to read as follows:
         (a)  Except as provided by Subsection (g), as a requirement
  for a manufacturer's, retailer's, broker's, installer's, [salvage
  rebuilder's,] or salesperson's license, a person who was not
  licensed or registered with the department or a predecessor agency
  on September 1, 1987, must, not more than 12 months before applying
  for the person's first license under this chapter, attend and
  successfully complete eight hours of instruction in the law,
  including instruction in consumer protection regulations.
         SECTION 3.10.  Section 1201.106(a), Occupations Code, is
  amended to read as follows:
         (a)  An applicant for a license or a license holder shall
  file a bond or other security under Section 1201.105 for the
  issuance or renewal of a license in the following amount:
               (1)  $100,000 for a manufacturer;
               (2)  $50,000 for a retailer [retailer's principal
  location];
               (3)  [$50,000 for each retailer's branch location;
               [(4)  $50,000 for a rebuilder;
               [(5)]  $50,000 for a broker; or
               (4) [(6)]  $25,000 for an installer.
         SECTION 3.11.  Section 1201.110, Occupations Code, is
  amended to read as follows:
         Sec. 1201.110.  SECURITY: DURATION. The department shall
  maintain on file a security other than a bond canceled as provided
  by Section 1201.109(a) until the later of:
               (1)  the second anniversary of the date the
  manufacturer, retailer, broker, or installer[, or rebuilder]
  ceases doing business; or
               (2)  the date the director determines that a claim does
  not exist against the security.
         SECTION 3.12.  Section 1201.116(a), Occupations Code, is
  amended to read as follows:
         (a)  The department shall renew a license if, before the
  expiration date of the license, the department receives the renewal
  application and payment of the required fee as well as the cost
  required under Section 1201.1031 [before the expiration date of the
  license].
         SECTION 3.13.  Section 1201.357, Occupations Code, is
  amended by adding Subsection (b-1) to read as follows:
         (b-1)  As authorized by Section 1201.6041, the director may
  order a manufacturer, retailer, or installer, as applicable, to pay
  a refund directly to a consumer as part of an agreed order described
  by Subsection (b) instead of or in addition to instituting an
  administrative action under this chapter.
         SECTION 3.14.  Section 1201.461(d), Occupations Code, is
  amended to read as follows:
         (d)  A person may not sell, convey, or otherwise transfer to
  a consumer in this state a manufactured home that is salvaged. A
  salvaged manufactured home may be sold only to a licensed retailer
  [or licensed rebuilder].
         SECTION 3.15.  Subchapter M, Chapter 1201, Occupations Code,
  is amended by adding Section 1201.6041 to read as follows:
         Sec. 1201.6041.  DIRECT CONSUMER COMPENSATION. (a)  Instead
  of requiring a consumer to apply for compensation from the trust
  fund under Subchapter I, the director may order a manufacturer,
  retailer, broker, or installer, as applicable, to pay a refund
  directly to a consumer who sustains actual damages resulting from
  an unsatisfied claim against a licensed manufacturer, retailer,
  broker, or installer if the unsatisfied claim results from a
  violation of:
               (1)  this chapter;
               (2)  a rule adopted by the director;
               (3)  the National Manufactured Housing Construction
  and Safety Standards Act of 1974 (42 U.S.C. Section 5401 et seq.);
               (4)  a rule or regulation of the United States
  Department of Housing and Urban Development; or
               (5)  Subchapter E, Chapter 17, Business & Commerce
  Code.
         (b)  For purposes of this section, the refund of a consumer's
  actual damages is determined according to Section 1201.405.
         (c)  The director shall prepare information for notifying
  consumers of the director's option to order a direct refund under
  this section, shall post the information on the department's
  Internet website, and shall make printed copies available on
  request.
         SECTION 3.16.  Sections 1201.610(a), (b), and (f),
  Occupations Code, are amended to read as follows:
         (a)  The [If the director has reasonable cause to believe
  that a person licensed under this chapter has violated or is about
  to violate any provision of this chapter or rules adopted by the
  department under this chapter, the] director may issue without
  notice and hearing an order to cease and desist from continuing a
  particular action or an order to take affirmative action, or both,
  to enforce compliance with this chapter if the director has
  reasonable cause to believe that a person has violated or is about
  to violate any provision of this chapter or a rule adopted under
  this chapter.
         (b)  The director may issue an order to any person [licensee]
  to cease and desist from violating any law, rule, or written
  agreement or to take corrective action with respect to any such
  violations if the violations in any way are related to the sale,
  financing, or installation of a manufactured home or the providing
  of goods or services in connection with the sale, financing, or
  installation of a manufactured home unless the matter that is the
  basis of such violation is expressly subject to inspection and
  regulation by another state agency; provided, however, that if any
  matter involves a law that is subject to any other administration or
  interpretation by another agency, the director shall consult with
  the person in charge of the day-to-day administration of that
  agency before issuing an order.
         (f)  If a person licensed under this chapter fails to pay an
  administrative penalty that has become final or fails to comply
  with an order of the director that has become final, in addition to
  any other remedy provided by law, the director, after not less than
  10 days' notice to the person, may without a prior hearing suspend
  the person's license.  The suspension shall continue until the
  person has complied with the cease and desist order or paid the
  administrative penalty.  During the period of suspension, the
  person may not perform any act requiring a license under this
  chapter, and all compensation received by the person during the
  period of suspension is subject to forfeiture to the person from
  whom it was received.
         SECTION 3.17.  Section 1302.061, Occupations Code, is
  amended to read as follows:
         Sec. 1302.061.  MANUFACTURED HOMES. This chapter does not
  apply to a person or entity licensed as a manufacturer, retailer,
  [rebuilder,] or installer under Chapter 1201 and engaged
  exclusively in air conditioning and refrigeration contracting for
  manufactured homes if the installation of air conditioning
  components at the site where the home will be occupied is performed
  by a person licensed under this chapter.
  ARTICLE 4. WEATHERIZATION ASSISTANCE PROGRAM
         SECTION 4.01.  Section 39.905(f), Utilities Code, is amended
  to read as follows:
         (f)  Unless funding is provided under Section 39.903, each
  unbundled transmission and distribution utility shall include in
  its energy efficiency plan a targeted low-income energy efficiency
  program as described by Section 39.903(f)(2), and the savings
  achieved by the program shall count toward the transmission and
  distribution utility's energy efficiency goal.  The commission
  shall determine the appropriate level of funding to be allocated to
  both targeted and standard offer low-income energy efficiency
  programs in each unbundled transmission and distribution utility
  service area.  The level of funding for low-income energy
  efficiency programs shall be provided from money approved by the
  commission for the transmission and distribution utility's energy
  efficiency programs.  The commission shall ensure that annual
  expenditures for the targeted low-income energy efficiency
  programs of each unbundled transmission and distribution utility
  are not less than 10 percent of the transmission and distribution
  utility's energy efficiency budget for the year.  A targeted
  low-income energy efficiency program must comply with the same
  audit requirements that apply to federal weatherization
  subrecipients.  In an energy efficiency cost recovery factor
  proceeding related to expenditures under this subsection, the
  commission shall make findings of fact regarding whether the
  utility meets requirements imposed under this subsection.  The
  state agency that administers the federal weatherization
  assistance program shall [provide reports as required by the
  commission to provide the most current information available on
  energy and peak demand savings achieved in each transmission and
  distribution utility service area.   The agency shall] participate
  in energy efficiency cost recovery factor proceedings related to
  expenditures under this subsection to ensure that targeted
  low-income weatherization programs are consistent with federal
  weatherization programs and adequately funded.
  ARTICLE 5. REPEALER
         SECTION 5.01.  The following provisions of the Government
  Code are repealed:
               (1)  Section 2306.255(h);
               (2)  Section 2306.560(d); and
               (3)  Section 2306.6710(f).
  ARTICLE 6. TRANSITION PROVISIONS
         SECTION 6.01.  The change in law made by this Act to Sections
  2306.043, 2306.044, 2306.045, 2306.046, and 2306.049, Government
  Code, applies only to a violation committed on or after the
  effective date of this Act. A violation committed before the
  effective date of this Act is governed by the law in effect when the
  violation was committed, and the former law is continued in effect
  for that purpose.
         SECTION 6.02.  The change in law made by this Act to Section
  2306.6022, Government Code, applies only to a complaint filed on or
  after the effective date of this Act.  A complaint filed before the
  effective date of this Act is governed by the law in effect at the
  time the complaint was filed, and the former law is continued in
  effect for that purpose.
         SECTION 6.03.  The changes in law made by this Act in
  amending Sections 2306.6710 and 2306.6718, Government Code, and
  adding Section 2306.67071, Government Code, apply only to an
  application for low income housing tax credits that is submitted to
  the Texas Department of Housing and Community Affairs during an
  application cycle that begins on or after the effective date of this
  Act. An application that is submitted during an application cycle
  that began before the effective date of this Act is governed by the
  law in effect at the time the application cycle began, and the
  former law is continued in effect for that purpose.
         SECTION 6.04.  Notwithstanding Sections 1201.101(f-1) and
  1201.106(a), Occupations Code, as amended by this Act, a retailer
  licensed to operate one or more branch locations on or before the
  effective date of this Act is not required to comply with the
  changes in law made by those sections until March 1, 2014.
         SECTION 6.05.  (a)  The change in law made by this Act in
  amending Sections 1201.103 and 1201.104, Occupations Code, applies
  only to an application for a license filed with the executive
  director of the manufactured housing division of the Texas
  Department of Housing and Community Affairs on or after the
  effective date of this Act. An application for a license filed
  before that date is governed by the law in effect on the date the
  application was filed, and the former law is continued in effect for
  that purpose.
         (b)  The change in law made by this Act in adding Section
  1201.1031, Occupations Code, applies only to an application for a
  license or license renewal filed with the executive director of the
  manufactured housing division of the Texas Department of Housing
  and Community Affairs on or after the effective date of this Act.
  An application for a license or license renewal filed before that
  date is governed by the law in effect on the date the application
  was filed, and the former law is continued in effect for that
  purpose.
         (c)  The change in law made by this Act in amending Section
  1201.116, Occupations Code, applies only to an application for a
  license renewal filed with the executive director of the
  manufactured housing division of the Texas Department of Housing
  and Community Affairs on or after the effective date of this Act.
  An application for a license renewal filed before that date is
  governed by the law in effect on the date the application was filed,
  and the former law is continued in effect for that purpose.
  ARTICLE 7.  EFFECTIVE DATE
         SECTION 7.01.  This Act takes effect September 1, 2013.
 
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